Road sector developer GR Infraprojects is expected to list at a massive 55-60 percent premium over its final issue price given the company's strong financials, attractive valuations and healthy order book.
Grey market trends also indicate similar potential listing gains. Currently, the stock of GR Infraprojects is available in the grey market at a 62-67 percent premium over the issue price of Rs 837.
According to IPO Watch and IPO Central data, shares traded at a premium of Rs 520-560 in the grey market, resulting into a share price of Rs 1,357-1,397.
"Looking at the good response from QIB & HNI, we assume listing of more than Rs 1,300 levels, which translates to 55 percent premium over the upper end of the IPO price Rs 837. Strong listing gains seem to be justified as the issue was well priced with attractive valuation when compared to other listed peers," Prashanth Tapse, VP Research at Mehta Equities told Moneycontrol.
The Rs 936-crore public issue of GR Infraprojects was subscribed 102.58 times during July 7-9, backed by investors across the board.
"Considering rationales like government's commitment and focus on road infrastructure development, healthy order book (over Rs 19,000 crore which is 2.4x FY21 Revenue) and reasonable valuations, we believe it gives investors a unique opportunity to invest in leading integrated EPC & BOT players with high focus on road projects design and construction of various stateways/highways projects across 15 states in India," Tapse added.
Astha Jain, Senior Research Analyst at Hem Securities, expects more than 60 percent premium on the listing of GR Infra.
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Since 2006, GR Infraprojects has executed over 100 road construction projects. As of April 2021, it has a huge project portfolio comprising of 1 operational BOT road project and 14 HAM road projects, of which, five projects are currently operational, four are under construction and for the remaining, the construction is yet to commence.
It also has experience in constructing state and national highways, bridges, culverts, flyovers, airport runways, tunnels and rail over-bridges.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.